My daughters mother and I alternate years in claiming are daughter. This year I claimed her, next year her mother will claim her.
My questions is whether I should opt out of the monthly payments this year, and if I don't opt out of the payments, will I have to pay the money I received back to the IRS next year when I do my taxes? Because I will not be claiming a dependent next year, because her mother will be claiming her.
TIA
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Hi Chad:
Thank you for trusting TurboTax to help with your tax questions. The rules for the new Child Tax Credit Advance are new and may be hard to follow. I will break it down in terms as simple as I possibly can. There are several rules that apply in your situation. Let's look at each one separately.
Thank you again for trusting TurboTax with your tax questions. I hope this helps! Please feel free to ask another question if you should need more information!
Have a blessed day! Lloyd7
Good afternoon!
If you claimed your daughter in 2020 then the IRS automatically enrolled you to receive the advanced payment on the child tax credit.
If you are not claiming your daughter this year, you should unenroll (stop) these payments. When you file your 2021 tax return you will need to reconcile the payments received and repay any excess amount you were not eligible to receive.
You can update your information and unenroll from the advanced payments at this site:
https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
I hope this is helpful to you!
Kind regards,
Fred Bright
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